Bollinger Bands Fibonacci Channel Indicator

The Bollinger Bands Fibonacci Channel indicator replaces the standard deviation multiplier in a classic Bollinger Band with Fibonacci ratios. It draws a center line plus three channel layers on each side, right on your main chart, so you can read at a glance how far price has wandered from its normal range.

The center line is a moving average that tracks recent price balance. The six outer lines fan out using three rising Fibonacci ratios, splitting the move into layers that run from hugging the center to shooting well past it. The deeper into the outer layers price travels, the more stretched the move is, and the higher the odds of a pullback or reversal. You can pick from several moving average types and switch to a Heikin Ashi price source for a smoother channel in choppy conditions.

What it shows you

• Which layer price currently sits in, from near the center line to pressing against the outermost band
• Whether the market is in a tight range or a trending stretch with the channel opening up
• How price reacts after touching an outer band, as a cue for mean reversion or trend continuation

How to use it

• Overlay it on your main chart and read price location alongside your own entry signals
• Pay closer attention when price tags an outer band, then decide whether to fade or follow based on the move
• Use the Heikin Ashi price source for a smoother channel, or standard close for a tighter fit to live price